500 shareholders - Aussie Stock Forums

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  1. #1

    Default 500 shareholders

    ASX listing rules require a company to have at least 500 shareholders.

    how the hell does a company get that many? and without breaching ASIC rules by advertising to the public?

  2. #2
    Rotaredom wayneL's Avatar
    Join Date
    Jul 2004

    Default Re: 500 shareholders

    Network Marketing? LOL

    Seriously, I have quite a few friends who were involved in the late 80's rash of silliness. Took a couple of "opportunities" (I can ROTFLMAO now) myself.

    One lot just took over a penny dreadful called Dataswitch Technologies for SFA (cheaper than the normal route) and got whats called a backdoor listing.

    The others, from what I could see were just from contacts and networking, friends of friends, business associates etc.

    It's where some serious bloody money can be made and I still have the contacts so let me know if you have something cooking. I may be able to help.


  3. #3

    Talking Re: 500 shareholders

    a backdoor may be the way. a lot of shells have more cash than their market cap. But I would want to retain control which I may have trouble getting going this way.

    Cooking....well yes I want to take my risk-free strategy commercial

    I could stay as i am, but even with 100% p.a it will take 7-8 years to make a mil. The alternative is to get hold of a mil, make another mil and give the lender his mil back plus half a mil profit, and I keep the other half mil and work it for another year....

    or as the mrs suggests, bump the capital up to $60k and retire.....

  4. #4
    Hatchet Moderator doctorj's Avatar
    Join Date
    Jan 2005

    Default Re: 500 shareholders

    Why bother with the hassle of a publically listed company? ASIC/ASX make listed public companies a hassle and expensive to administer.

    A much simpler way would be to form a private company. This offers a maximum of fifty shareholders, slightly more freedom than a public company and its less costly to administer. If 50 shareholders is a hassle, you could form a public non-listed company, but be aware that the regulatory requirements step up in both hassle and cost.

  5. #5

    Default Re: 500 shareholders


    Trade it live on a well read forum/s(You dont have to show how its traded just entry and exit as it happens)
    Give a 100% moneyback guarentee--its 100% risk free so that includes you.

    After 12 mths youll have 100s if not 1000s beating a road to your door with $$$s to purchase the method.


    Better still charge 10%(Or whatever) on funds invested (Pretty fair for 100% return) and youll make your million/s in quicktime.

    Lease the method to Fund Managers.


    Trade it for 12/24/36 mths and have the trading statements audited by 2 independant auditors of high profile then hit the lecture circuit get a well known celebrity involved in the whole process(Free for them) in return for their endorsement(They sign a confidentiality agreement).No problem when youve made them 100%

    "100% return---100% moneyback guarentee
    100% risk Free----100% audited results by Ernst Young blah blah"

    You wouldnt be able to find enough seats!

    Whats the problem?
    Why do you need a Public Listed company?

  6. #6

    Default Re: 500 shareholders

    trading live is difficult. firstly, there are no 'trades' to speak of. The strategy is not about capital gains. it is about yield. I suppose I could continue to commentate on the daily profits but since they are so consistent it is likely to bore all who watch.

    I have been showing the progress to those in my chatroom. So far one party has approached me and asked for me to manage some cash of theirs in my account.

    This is a win-win situation as I dont do any more work but get rewarded more, and the investor makes a lazy 50%.

    I cannot get a dealers licence. Well maybe I could, I havent tried very hard. I do know that one of their requirements is 3 years experience in a suitably relevant firm. Strictly speaking I dont have that. To get around this, one solution is to be the CEO of a listed company. That way I can invest in whatever I want and ask the shareholders for more money (unless there is plenty in the bank already). An added attraction to having a listed company is the growth premium. With such a high yield, the shares will run from the word go. Trading a private company is ok except that the shares will only ever be worth their NTA. Going public gives the seed capitalists a good headstart. Its surely not that hard to meet ASX disclosure guidelines?

    As for selling the idea to a hedge fund, Im not sure how that could be done without revealing all beforehand.

    I cant do a 'lecture circuit' because ASIC law prevents it. Though that never stopped Break Free did it.

    I suppose auditing could be done fairly easily. I have already proved to my 1st investor that the return is not a figment of my imagination. Perhaps this is all that the first investors will need. Maybe other investors will accept their faith and follow suit.

    but if there are better ideas Im all ears....

  7. #7
    Hatchet Moderator doctorj's Avatar
    Join Date
    Jan 2005

    Default Re: 500 shareholders

    If you could prove your method to interested parties in here (using the method Tech/a has suggested - though, I'd settle for a single audit from a big four firm, especially if it was done by EY Perth) and set up the appropriate company structure you'd be well on your way to increasing your returns.

    I'll preface this by saying that I haven't done any reading into your method, but forgive me if I remain sceptical over an offer of a high return/low risk scenario, though I'll be amongst the first in line if you could prove it and I believed you wouldn't take the money and run to Mexico.

    A private company would make shares in it worth only their NTA's (or what someone was prepared to pay for them), but most LIC's trade at a discount to their NTA, so perhaps its not such a bad thing. At the end of the day your company's goal would be maximising shareholder income, not appreciation of their investment capital...

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